Tweet by michaelxpettis

April 24, 2025

8/8 stave off overcapacity is temporarily, with rising debt. Once debt is no longer able to rise, as we saw in the late 1920s/1930s (and as Marriner Eccles explained), overcapacity must be curbed, which, usually means a drop in production and a contraction in global trade.

Author
michaelxpettis
Date
April 24, 2025